July 20, 2022 18:45 GMT
- A report by S&P Global notes the growing challenges facing US housing affordability, with low affordability already cutting 40% of households out of the market for starter homes with a forecast of this rising to 60% by end-2025.
- A greater share of fixed rather than floating mortgages helps limit exposure to climbing rates but prospective homeowners will be vulnerable to higher monthly payments.
- That’s further supported by the slide in today’s existing home sales to the lowest since Jul’20, and weekly MBA mortgage applications poking through last month’s low for the lowest since 1999 as soaring mortgage rates bite.
- Full report: https://www.spglobal.com/ratings/en/research/articles/220720-economic-research-the-american-dream-may-no-longer-be-in-reach-12440592